Get something extra for being a loyal customer.
We’ve all heard the saying there’s no loyalty in banking. We encourage shopping around to find yourself a better deal. But sometimes it can be worth staying put with your current investment. Financial institutions offer loyalty bonuses for customers who show continued support.
Whether it’s a loyalty bonus for reinvesting your term deposit, bonus interest for making continued deposits or fee waivers for bundling cards and loans, loyalty bonuses are worth looking at before you jump ship and invest your money in a different savings account or term deposit.
Compare savings accounts with loyalty bonuses
There are many different savings accounts which reward you with bonus interest for keeping up with regular saving. These accounts provide an incentive to grow your account balance. There are other accounts that come with bonus interest when you open a transaction account too. Other types of loyalty bonus include special term deposit rates for returning customers. There are even discounts on card fees and special rates available when products are bundled together.
The ME Online Savings Account and ING Savings Maximiser are two of the most rewarding high interest savings accounts on the market. Both ME and ING require that you also have one of their transaction accounts to get the bonus interest rate. You can open a transaction account with these deposit taking institutions when you apply online for these savings accounts.
The ME Online Savings Account
The ME Online Savings Account pays one of the highest interest rates on the market: 2.85% p.a. when you also have a ME Bank transaction account. The transaction account comes with a Mastercard debit card. You get the bonus interest (1.55% p.a.) when you make a Tap&Go purchase at a contactless terminal. You must make a PayPass purchase at least once a month to get the bonus interest. The base variable rate (1.30% p.a.) applies if you don’t make a tap & go purchase.
ING Savings Maximiser
The ING Savings Maximiser savings account has a base variable rate of interest of 1.00% p.a. and a bonus interest rate of 1.80% p.a. To get the bonus interest, you need to have an ING Orange Everyday transaction account and deposit at least $1,000 each month into the Orange Everyday account, plus make 5+ card purchases a month.
A bonus interest saver account rewards you for showing continued interest in saving more. You’ll earn a low rate of interest which can sometimes be practically nothing if you make even one withdrawal. To get the bonus interest you’ll need to make regular deposits too. Some financial institutions require regular deposits of at least $10. Meet these monthly requirements and you can enjoy upwards of up to 3.00% p.a.
From the accounts we compare, these bonus saver accounts have the highest bonus rates of interest.
While Bankwest has the highest bonus rate of interest, it doesn’t pay the most interest. The ME Online Savings Account has a higher maximum interest rate: 2.85% p.a. The Bankwest account comes in 0.20% lower with a maximum interest rate of 2.60% p.a.
There are also savings accounts which pay more for the first couple of months. These bonus introductory rate savings accounts reward you with the base variable rate at the end of the bonus period.
Most term deposits rollover to a new fixed investment for the same term at the rate applicable at the time of maturity. From the financial institutions we compare on finder.com.au, these term deposits have loyalty bonuses when you agree to invest your money again.
Get a 0.10% p.a. bonus on your term deposit when you reinvest at maturity
HSBC. An extra 0.10% p.a.for existing HSBC customers who open a term deposit through HSBC internet banking. Terms up to 60 months on a minimum investment of $5,000.
ING. Get an extra 0.10% p.a. when your term deposit matures and you reinvest your money with ING. The loyalty bonus is noncumulative. Invest $10,000 or more to open an ING term deposit.
RaboDirect. Your term deposit will be automatically reinvested upon maturity unless you state otherwise. Get a loyalty bonus of 0.10% when you keep your fixed investment with RaboDirect. Terms range from 1 month to 60 months.
UBank. Roll over your Ubank term deposit for the same or different term and get a 0.10% p.a. bonus on the rate at the time. Terms up to 12 months for a minimum investment of $1,000.
What does non-cumulative mean?
When a term deposit loyalty bonus is paid on a non-cumulative basis, it means that the bonus only applies to the portion of the investment which is being rolled over for another term.
How do I rollover my term deposit to a new term?
If your term deposit provider wants to offer you a loyalty bonus if you invest your money for another term, you can choose your new investment within internet banking in most cases. Select your term deposit product and during the grace period that follows maturity, select a new term. You will receive written confirmation from the financial institution about the term deposit rate, term, interest payments and other details.
Can I negotiate my savings account and term deposit rate?
You can try to ask for a better rate on your savings account or term deposit. In the case of term deposits, you may have extra leverage as a returning customer. It’s up to the institution which offers the term deposit or savings account as to whether you can get a non-advertised interest rate.
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